An Analysis On Economic Development And The Urban-Rural Interactions At The Background Of Urbanization

With the development under reform and open-door policy, China’s economic strengthhas grown rapidly, accelerating the process of urbanization. In the report delivered during theThird Plenary Session of CPC’s17th Central Committee, it once again focused on rural issues,noticeably clarifying that “At present, China has entered the stage where industry and urbanareas are to help agriculture and the rural areas. At this stage China is experiencing anaccelerated transformation of traditional agriculture, breaking up the dual economic structureof urban and rural areas, and taking the path of agricultural modernization toward theintegrated and coordinated development of both urban and rural areas with Chinesecharacteristics.”As one of the major cities of Northern China and the leading town of thecoastal economic belt in the northeastern Liaoning Province, Dalian has taken a solid pace ofurban and rural development in recent years, tried to explore a distinctive feature of themodernization of agriculture and urbanization road, and has achieved remarkable results. Inspite of the outstanding progress Dalian has achieved in the last several years, there is a longway to go. It is imperative to be well aware that: the agricultural foundation remains weak andneeds to be intensified; the rural development remains lagged behind and needs to beintensified; the rural development remains lagged behind and needs to be supported; itremains difficult to increase farmers’ income and efforts should be made to make it growfaster; and there is still a striking disparity between urban and rural development, whichrequires integrated efforts to achieve the balance. In such circumstance, an in-depth study andcomprehensive analyses focusing on the city’s urban-rural development would be essentialand valuable.Based on the statistical data of economic development and overall planning of urban andrural areas in Dalian City during1992-2010，using the method of the principal componentanalysis，Hodrick Prescott filter，co-integration analysis, Granger causality test and impulseresponse functions，the interaction on economic development and overall planning of urbanand rural areas in Dalian City was analyzed in this paper．The results show that there exists acause-effect relationship between economic development and overall planning of urban andrural areas in Dalian City. Economic growth does not automatically lead to harmonious relations between urban and rural areas, but broadens further the urban-rural gaps in long termon the one hand.As a result, we believe that, the current urban and rural development of Dalian remains aconcentration mode, with problems like economic disparity between urban and rural areas,imbalance in population distribution, disparity in incomes and life quality between urban andrural residents, disparity in transport and municipal facilities, etc. Based on empirical analysis,with the further economical development of Dalian, the gap between urban and rural areaswill continue to increase. In order to form a good situation with the urban areas driving ruraldevelopment, the rural areas supporting urban development, and both urban and ruraldevelopments well coordinated and integrated, it is necessary to make strategic plans whiletaking into consideration the whole picture. We should take efforts in the following areas:coordinate land use and urban and rural planning to boost integration of urban and ruralspatial overlay; coordinate industrial development in urban and rural areas to speed upinteractive upgrading of urban and rural industries; coordinate urban and rural infrastructureto accelerate network joining of urban and rural infrastructure; coordinate urban and ruralpublic services to quicken improvement of public security systems in rural areas; coordinateurban and rural employment to boost farmer employment; and coordinate urban and ruralsocial management to accelerate improvement of integration systems for urban and ruralareas.